Everything else held constant, when actual output exceeds the natural rate of output ________ aggregate supply ________
A) short-run; decreases
B) short-run; increases
C) long-run; increases
D) long-run; decreases
A
Economics
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When there is only one buyer in the market
A) a closed shop exists. B) a monopsony exists. C) then the market will be perfectly competitive. D) the supply curve for the good will be perfectly elastic.
Economics
Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; lower; potential B. expansionary; higher; potential C. recessionary; lower; potential D. recessionary; lower; lower
Economics